Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


IG - Afternoon thoughts January 10, 2012

FTSE 6103 +4
DAX 7733 +13
CAC 3720 +3
IBEX 8634 +28
DOW 13415 +24
NAS 2734 +6
S&P 1464 +3

Oil 93.45
Gold 1657

Regional markets are mostly firmer on the back of China’s trade balance numbers, which smashed expectations. China posted a trade surplus of $31.6 billion (versus a consensus of $20.1 billion) with exports jumping 14.1% and imports up 6%. Equities have gained ground on the back of the data with the Nikkei rising 0.8%, the Hang Seng climbing 1% and the Shanghai Composite advancing 0.7%. USD/JPY is back above 88 and is helping to underpin gains in the Nikkei ahead of Japan’s current account data tomorrow. Should this data miss expectations then we are likely to see further yen weakness. In the risk currency space, AUD/USD has been a standout after jumping from 1.05 to an Asian trade high of 1.0554. The pair had been subdued earlier after local building approvals and retail sales data disappointed. However, with China continuing to show strong signs of stabilisation, AUD/USD is in good stead. The pair had been stuck in a range between 1.047 and 1.052 all week and this move finally saw it break out. As a result, the 1.052 region will now be acting as near-term support. The other risk currencies haven’t responded quite as profoundly, with EUR/USD and GBP/USD remaining relatively subdued ahead of central bank meetings later today.

Investors will be on central bank watch later today with the BOE and ECB set to meet. Ahead of the European open, we are calling the major bourses flat to mildly firmer. Subdued price action in GBP/USD and EUR/USD suggests market participants are exercising caution ahead of the central bank meetings. Both banks are expected to leave the current policy settings unchanged. The ECB press conference will carry more weight with Mario Draghi set to hit the wires. Mr Draghi might give hints on what to expect from the OMT, potential for negative rates and perhaps the growth outlook following the recent reforms. US markets are pointing to a firmer start with unemployment claims data in focus. Fed members George and Bullard will also be on the wires and might make some comments regarding QE.

The local market has added 0.3% 4721 after materials swung into positive territory on the back of China’s data. Fortescue Metals has surged 2.5%, Alumina is 3.4% higher and BHP Billiton has edged up 0.2%. AWC was upgraded to outperform (from neutral) by Credit Suisse today. The stock has been having a good run on the back of the Alcoa result. The energy sector is underperforming despite Linc Energy shares rallying over 11%. Gold miners have continued to lag as the precious metal fails to shake off recent weakness. Newcrest Mining has declined 1.7% and Medusa Mining is down 1.4%. The financials have held up well with all four big banks modestly firmer. Surprisingly defensive sectors continue to lead the gains despite all the developments on the risk front. Consumer staples are having a good run with Wesfarmers rising 1.1% and Coca-Cola Amatil up 1%.

ENDS

www.igmarkets.com

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news